German economy closed 2023 with a contraction of 0.3 %

This Tuesday, Germany's Federal Statistics Office published data for the last quarter of 2023, a period during which the country's economy contracted 0.3 %

According to data published this Tuesday by the German Federal Statistical Office, the country’s economy contracted 0.3% during the last quarter of 2023.

Among the factors that influence this contraction of Germany’s economy, compared to the previous quarter of 2023, are “persistent inflation, high energy prices and the weakness of foreign demand.”

Some analysts warn of a possible technical recession in Europe’s largest economy for the first quarter of this year.

As if this scenario were not worrying, this Tuesday the German Ifo institute, “an early indicator of the evolution of the German economy,” projected a “GDP fall of 0.2 % in the first quarter of 2024.”

Economist Alexander Krüger, from Hauck Aufhaeuser Lampe, has referred to German economic production, pointing out that during 2023 it did not exceed the level of four years ago. He added that “lack of growth is fashionable in this country.”

For his part, Thomas Gitzel, representative of VP Bank, stated that beyond the fact that the factors point to stagnation this year, there is a ray of hope through the relaxation of inflation.


Source: Finanzasdigital

(Reference image source: Maheshkumar Painam at Unsplash)

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